Feds tweak the mortgage rules
Finance Minister Jim Flaherty unveiled tougher mortgage lending rules today.
It was initially rumoured that one of the changes would be an increase of the minimum down payment from 5% to 10%. Thankfully that wasn’t one of the changes implemented.
Instead the maximum amortization period has been shortened from 35 years to 30 years and the maximum a home can be refinanced for is 85% of value down from 90% previously.
Reasonable changes, I think. They are slated to come into effect on March 18th,2011.
Now, if they could look into credit card rates or maybe figure out why the price of gas goes up before every long weekend.